The New Zealand currency market is "sitting on its hands" waiting for the Reserve Bank to release its Monetary Policy Statement on August 16, says Derek Rankin, of Greenwich Financial Services.
A bank holiday in Sydney and Canberra yesterday, combined with the vacation season in the United States and Britain, meant the local market was very quiet, he said.
"This is typical for this time of year when there's not a lot happening."
The kiwi closed yesterday at US45.51c, down on its 45.65c opening price and slightly down on Friday's 45.56c close.
It traded in a tight range, between US45.5c and 45.68c.
Mr Rankin said the market would wait to see whether the Reserve Bank lifted interest rates next week, although most economists believed it would leave rates as they were.
The Australian dollar was trading stronger locally at US58.62c, from 58.46c at close last week.
On the cross rates, the kiwi was at A77.63c from Friday's close of A77.94c.
The local unit's trade-weighted value was weaker at 51.44, from Friday's close at 51.60.
With the yield on 90-day bank bills two notches lower at 6.77 per cent, monetary conditions were tighter, with the index at minus 544, from minus 526.
In the bond market, the April 2004s were at 6.67 per cent (6.71); November 2006s at 6.64 per cent (6.69); and July 2009s at 6.62 per cent (6.67).
- NZPA
Kiwi quiet, waiting on Reserve
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